New very strong increase of the prices yesterday, for all products, still due to the war in Ukraine, and because of fears of hydric deficit on the USA.
Tension is thus extreme with a risk of seeing certain importing countries no longer being able to obtain sufficient supplies. Because of this, the issues of food security, food power and food sovereignty are back in the spotlight.
The main wheat importing country, Egypt, is considering authorizing India as a supplier in its next calls for tenders given the context. Indeed, the latter is experiencing a very good harvest this year and could be able to export 9 to 10 million tons.
The Ministry of Agriculture has estimated the area of soft wheat in France at only 4.77 million hectares, down nearly 400,000 hectares from last year and 11.6% below the 5-year average. The surface area of all barley crops increased by +4.3% to 1.81 million hectares, including 553,000 hectares of spring barley, up +4.1% from last year. Rapeseed acreage increased by +18.4% compared to last year to 1.16 million hectares, which nevertheless remains 6.7% lower than the 5-year average. The restrictions on the use of insecticides on this product are mainly responsible for this.
Internationally, South Korea has purchased 207,000 t of corn and Japan is once again purchasing nearly 115,000 t of wheat, from the USA, Canada and Australia.
Palm oil is losing some ground this morning in Kuala Lumpur but remains on a bullish trend. The same goes for oil, which is trading around 100.00 usd/barrel in New York. The dollar is little changed at 1.0830 against the euro and 83.10 against the ruble.